SWEEP EASY CHIMNEY SWEEP FULL
SWEEP EASY CHIMNEY SWEEP PROFESSIONAL

SWEEP EASY CHIMNEY SWEEP FULL

This would have been confusing for both us and the customer.īut thirdly it also meant, for a short while, we were able to receive the full benefit of a price rise, which we could then use to invest in a much improved booking service for customers. Firstly, we knew weíd have to do it anyway within the next few months, and secondly it meant we would get there in time for silly season, as I didnít want to be messing around with prices in peak season. Moreover, because we knew that we were heading towards the VAT limit anyway, we decided to raise prices in advance. So that meant going from £70 for a standard sweep to £85. This is the part which usually worries tradespeople the most – how will VAT impact on customers?Īre you going to pass on the full VAT cost or try to absorb it in some way?Īt Mr Soot, we decided early on that we would pass on the full VAT cost. Nor can you claim back materials/goods you sell onto customers because, regardless of the cost, they are not assets. Under this scheme, you canít claim back for smaller items which fall under the £2,000 mark. This sounds better than Standard Rate, but hereís the catch – you can only claim back the VAT on capital assets of £2,000 or more, so things like vans, pressure testers, more expensive CCTV inspection kit and so on. On the Flat Rate, you only have to give 12% to the government (11% in the first year) and you get to keep the remaining 8% (or again 9% in the first year). In return, you can claim VAT back on all purchases where youíve paid VAT (smoke pellets, gloves, stoves, liners, cowls etc). On the Standard Rate, you give 20% of your takings to the Government. Tip #2 – Decide Early Which VAT Scheme Youíre Going To Joinįor sweeps, there are generally two schemes – Standard Rate and Flat Rate. This is also the time to start flagging it up with your accountant, if theyíve not mentioned it to you already. This is how many are caught out theyíre not aware itís on a rolling, 12-month basis. Itís not – as some mistakenly assume – £85,000 in your financial year, itís in a *calendar* year. Once youíve made over £85,000 of sales in the previous 12 months, you have to register for VAT. The last thing you want is be told that youíve accidentally gone over the VAT limit, as youíll have to pay the difference to HMRC. Tip #1 – Keep An Eye On Your Takings BEFORE You Hit The Threshold There are a number of considerations to take into account, so you must always get your own advice from a suitably qualified financial professional.īut here’s five top tips I learnt when navigating the VAT minefield:

My own business, Mr Soot Chimney Sweep, went VAT registered earlier this year.

SWEEP EASY CHIMNEY SWEEP PROFESSIONAL

But with business-savvy people entering the trade, and demand for our professional services, the number of sweeps going VAT registered is climbing. Mention VAT to most tradespeople and theyíll go running for the hills. Guild member David Sudworth talks about his own experiences of registering

Sweep easy chimney sweep